Seoul: South Korean stocks opened sharply lower on Friday amid increased risk-off sentiment stemming from renewed concerns over tensions in the Middle East. After opening with a steep 2.93 percent decline, the benchmark Korea Composite Stock Price Index (KOSPI) dropped 204 points, or 3.74 percent, to 5,256.46 within the first 20 minutes of trading.
According to Yonhap News Agency, U.S. markets experienced a significant downturn overnight as President Donald Trump provided mixed signals regarding the United States' negotiations with Iran. Trump issued a stern warning to Iranian negotiators, suggesting they "better get serious soon, before it is too late," but subsequently commented that the U.S. and Iran are engaged in "substantial talks."
The White House further announced a decision to extend a pause on strikes targeting Iranian power plants and energy infrastructure until April 6. In response to these developments, the S and P 500 fell by 1.74 percent, while the tech-heavy Nasdaq saw a retreat of 2.38 percent.
In Seoul, large-cap stocks faced declines across various sectors. Notably, chip giant Samsung Electronics saw a decrease of 3.72 percent, and its competitor SK hynix retreated by 4.82 percent. Automotive leader Hyundai Motor experienced a dip of 3.98 percent, defense company Hanwha Aerospace moved down by 4.38 percent, and prominent financial entity KB Financial shed 3.35 percent.
The Korean won also weakened, trading at 1,511.5 won against the U.S. dollar, which marks a decrease of 4.5 won from the previous session as of 9:20 a.m.